Pakistan Cables: Most leveraged to mega construction projectsPakistan Cables is the oldest and the only listed manufacturer of cables in Pakistan. Thecompany manufactures a wide range of general and specialized wires for customers rangingfrom house owners to electric utilities. In 2010, the company set up a new plant tomanufacture cables for the automobile industry. In the same year, General CableCorporation bought a 25% stake in the company for US$7mn (US$1 per share). Theproceeds from the equity issue were used to reduce company’s long term debt, which willreduce recurring financial costs by PKR 2.6/share.

Sales for the company are linked with the overall economic activity and have rebounded inthe last eighteen months due to commencement of sales to the automobile sector andhigher demand from the ‘house wiring’ sector. During the six months ending December2011, company sales were up 71% while its normalized profits doubled. Although, themargins for the company continue to be low due to tough economic conditions, high rawmaterial prices and high advertising expenditures; revenue and earnings growth is expectedto continue due to uptick in construction activity. While the company is currently trading ata fair multiple of 7.5x its adjusted FY12E earnings of PKR 5.1/share, we believe increase indemand from the organized sector (new factories, malls, mega construction projects) andhigher developmental spending can lift its FY13E earnings. Also, given a small capital base of28mn shares, marginal change in demand can translate into significant earnings upside.PCAL FY07 FY08 FY09 FY10 FY11EPS 6.83 2.30 2.25 1.60 3.01DPS 1.93 0.00 1.70 1.13 2.00PER 5.8 17.2 17.6 24.7 13.1Dividend Yield 5% 0% 4% 3% 5%ROE 32% 10% 9% 6% 6%ROA 7% 2% 2% 1% 2%Source: Elixir Research, Company Accounts1Yr – Relative PerformanceSource: Elixir Research

Pakistan Cables: Most leveraged to mega construction projectsPakistan Cables is the oldest and the only listed manufacturer of cables in Pakistan. Thecompany manufactures a wide range of general and specialized wires for customers rangingfrom house owners to electric utilities. In 2010, the company set up a new plant tomanufacture cables for the automobile industry. In the same year, General CableCorporation bought a 25% stake in the company for US$7mn (US$1 per share). Theproceeds from the equity issue were used to reduce company’s long term debt, which willreduce recurring financial costs by PKR 2.6/share.

Sales for the company are linked with the overall economic activity and have rebounded inthe last eighteen months due to commencement of sales to the automobile sector andhigher demand from the ‘house wiring’ sector. During the six months ending December2011, company sales were up 71% while its normalized profits doubled. Although, themargins for the company continue to be low due to tough economic conditions, high rawmaterial prices and high advertising expenditures; revenue and earnings growth is expectedto continue due to uptick in construction activity. While the company is currently trading ata fair multiple of 7.5x its adjusted FY12E earnings of PKR 5.1/share, we believe increase indemand from the organized sector (new factories, malls, mega construction projects) andhigher developmental spending can lift its FY13E earnings. Also, given a small capital base of28mn shares, marginal change in demand can translate into significant earnings upside.PCAL FY07 FY08 FY09 FY10 FY11EPS 6.83 2.30 2.25 1.60 3.01DPS 1.93 0.00 1.70 1.13 2.00PER 5.8 17.2 17.6 24.7 13.1Dividend Yield 5% 0% 4% 3% 5%ROE 32% 10% 9% 6% 6%ROA 7% 2% 2% 1% 2%Source: Elixir Research, Company Accounts1Yr – Relative PerformanceSource: Elixir Research

Director bought good quantity below 90,hope u followed them but without B upside will b limited

That was during may when it went up from 84 to 105, i missed that rally. This time i will want to buy it near 84 because it has a strong support there.yeah it did broke the resistance of 91, lets see if it holds on to that or moves back to 86 and then 84 :)